Managing Spillover Crises in the Age of Generative AI
Date
Authors
Wang, Yijing
Laufer, Daniel
Supervisor
Item type
Journal Article
Degree name
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier BV
Abstract
The rapid development of generative artificial intelligence (GenAI) has marked a significant shift in how organizations operate and innovate. While GenAI offers new opportunities, it has also created new risks that can escalate into crises. Importantly, these crises are not always limited to the organization where they originate but can spill over to other organizations in the same sector, leading to broader reputational consequences. This article investigates such spillover crises in the age of GenAI. We build on Laufer and Wang’s crisis spillover model and extend it to GenAI-related contexts. Specifically, we identify five types of spillover crises associated with GenAI and illustrate them through real-world cases. These cases highlight how reputational damage can extend beyond a single firm, affecting others in the industry. We propose a strategic framework to help organizations identify the risk of spillover crises, and we offer prescriptive guidance for avoiding, mitigating, or responding to spillover crises when they occur.Description
Keywords
35 Commerce, Management, Tourism and Services, 3507 Strategy, Management and Organisational Behaviour, Machine Learning and Artificial Intelligence, 1503 Business and Management, 1505 Marketing, Business & Management, 3505 Human resources and industrial relations, 3506 Marketing, 3507 Strategy, management and organisational behaviour, Crisis spillover, Generative AI, Crisis types, Reputational damage, Crisis response, strategies
Source
Business Horizons, ISSN: 0007-6813 (Print), Elsevier BV. doi: 10.1016/j.bushor.2025.10.006
Publisher's version
Rights statement
© 2025 Kelley School of Business, Indiana University. Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).